Tagging error in header.php

The code in header.php show that the page title for inside pages should be an h3 tag. This is not good for SEO. All page titles should be h1.

<div id="header-text" class="<?php echo $screen_reader; ?>">
<?php if ( is_front_page() || is_home() ) : ?>
   <h1 id="site-title">
     <a href="<?php echo esc_url( home_url( '/' ) ); ?>"
                                   title="<?php echo esc_attr( get_bloginfo( 'name', 'display' ) ); ?>"
                                   rel="home"><?php bloginfo( 'name' ); ?></a>
    </h1>
<?php else : ?>
  <h3 id="site-title">
    <a href="<?php echo esc_url( home_url( '/' ) ); ?>"
                                   title="<?php echo esc_attr( get_bloginfo( 'name', 'display' ) ); ?>"
                                   rel="home"><?php bloginfo( 'name' ); ?></a>
   </h3>
<?php endif;